scarcity leads to sky-high price??

Scarcity means limited supply. It really depends on the market condition as to the product in question. For example, you own a precious stone. If the people cannot appreciate the beauty of it, it is worthless. If all the people loves stone and it is unique, then the highest offer will get the stone. However, if it refers to limited supply of necessities such as public transport, it can amount to a rape of wealth from citizens. Scarcity must be regulated by utilization in order to achieve a reasonable market price, or so called 'fair value'. That depends on the wealth of the citizens and the product or service in question.

As long as there is a demand for the product, reducing supply will equal
to higher prices. If there is no demand, then it doesn't matter.



...